Rebirth of the Burning Era

Vol 2 Chapter 360: bad competition

This is a topic that seems a little confusing: Pepsi invests in Tianfu, uses the shell of Tianfu to produce Pepsi Cola, and opens a channel for Pepsi Cola to enter China.

There seems to be no problem.

However, Liang Yifei always talked about the topic over and over again, but Thomas was not as impatient as he was at first, and his expression became obvious and solemn.

"What is the biggest obstacle for PepsiCo to enter China?"

Liang Yifei asked himself and answered: "Is it the government's permission? Obviously not, our Chinese government has always welcomed foreign businessmen. Is it production equipment, venues and labor? Maybe, but with China's prices and human resources costs, Three hundred million is enough to build a factory. In fact, a large part of Tianfu's subordinate bottling plants are currently idle. That is to say, if you buy Tianfu, the three hundred million and the salary of the staff will be at a premium. Then the question arises, with Pepsi's shrewdness, why buy Tianfu at a premium? If you follow the normal process and build your own factory, the cost will be lower."

After a pause, he said with a smile: "Of course, China's policy is to replace technology with the market, and it is difficult for foreign investors to invest in it, so they must find a shell to cooperate with, but the problem is back to the beginning, and it is completely possible to find a smaller and cheaper one. Why do local manufacturers spend so much money to find Tianfu?"

Hearing the phrase 'market for technology', Thomas' contempt for Liang Yifei has finally changed. This is indeed China's current national policy, but it does not appear in any official documents. Not every Chinese entrepreneur and official can be clearly grasped.

Even foreign-invested companies may not know every single one of them. Only large companies like PepsiCo can come to such a judgment after careful analysis: the backward China provides various concessions to foreign businessmen and opens up its market in order to In a short period of time, we will use our own market to attract foreign technology, and let foreigners earn money in exchange for advanced foreign technology and experience.

Liang Yifei was talking almost all the time, and he added: "Because Tianfu is a good brand, it ranks first among domestic cokes, and has the largest market share, even surpassing Coca-Cola. Of course, investing in Tianfu will make people think that this is a fortune. A win-win deal, domestic brands get foreign capital and technology to become bigger and stronger, and foreign capital can grab profits. But..."

Having said that, Liang Yifei was no longer ready to go around detours, staring at Thomas' blue eyes with a solemn expression, and said, "However, the fundamental purpose of Pepsi's acquisition of Tianfu Cola is to eliminate Chinese domestic brands and destroy them at the lowest price. The biggest competitor in the mainland market!"

Thomas' brows gradually wrinkled, but he remained silent, staring at Liang Yifei.

"As expected of a world-class company, this set of business methods is used without anyone knowing it. It seems to be investing in the Tianfu brand. After getting it, I immediately hid the brand and let it make room for Pepsi. If you compete normally, you want to To defeat Tianfu Cola, your publicity expenses, marketing expenses, production and construction expenses are far more than 300 million yuan, maybe 300 million yuan can't do it, but now, with this small amount of money, you can completely make a mainland market share. The biggest, national brand products that the state is positioned to support, disappeared from the market, and then Pepsi took advantage of the opportunity to occupy the gap left by Tianfu, winning a battle almost without a single shot.”

With a sneer on his face, Liang Yifei applauded softly and said, "Coca-Cola has been fighting this battle for more than ten years and has invested countless times, but it has never made much progress. 100 million, it is completed in one year, should I praise it?"

After a pause, he said, "Mr. Thomas, if you continue to remain silent, then I will leave now. You can talk to the local government about this issue, or you can talk to the Tianfu Chinese side."

Thomas finally spoke up and said, "So what? First, it's just your guess. Second, we didn't break the contract."

"First, now you can say that this is just my guess, but if the production of Tianfu Cola still drops sharply from this year, and it drops sharply when many bottling plants are idle, then my guess is obviously is correct; second, you may not have violated the contract, but you have violated the principles of doing business with China."

Thomas spread his hands and said disdainfully, "What principles? I haven't received any official or Tianfu Chinese notices telling me there are any principles other than contract terms."

"I said that we use the market for technology and capital. What does this mean? That is to say, we have made significant concessions and sacrifices for foreign businessmen, and if you take advantage of such concessions and sacrifices, you will gain To benefit, it should bring us improvements in technology, capital, management, etc. In short, we are paying tuition fees. Mr. Thomas, I would like to ask, is there any school in the world where students pay high tuition fees? Tuition fees, the teacher does not teach skills, not only does not teach skills, but the students who deceive them go bankrupt?"

After seeing the Tianfu information in the car for the first time, Liang Yifei's heart moved slightly, and he became suspicious. After chatting with the Tianfu factory guards and locals such as Bahrain, and after visiting the Tianfu factory on site, Liang Yifei can already confirm that Pepsi uses it. This set is exactly what I learned in my MBA in my previous life. In the early 1990s, the most common and worst trick in the fierce competition between foreign brands and domestic brands:

In the early and mid-1990s, after more than ten years of exploration and development of reform and opening up, a number of excellent domestic brands have emerged. Coupled with the support of the country, the patriotism of the people, and the pride of national brands, these brands initially have a reputation in the market. The strength of local and global brands to compete.

Foreign businessmen entering the mainland market did not confront these local brands head-on, but used huge capital to directly buy brands and hide them.

In just two or three years, those domestic brands that were once popular all over the country disappeared. When they came back to their senses and began to prohibit such foreign capital from controlling domestic powerful brands, it was too late, and foreign brands had already occupied the market. ‘

Many brands like Tianfu that hoped to become the light of the nation just disappeared.

Strictly speaking, this is one of the tuition fees to be paid when falling behind and moving forward.

Liang Yifei had never learned about the Tianfu case, but Liang Yifei had learned this method, so after a thorough investigation, he could clearly determine Pepsi's true intentions.

Liang Yifei's tone became severe and said: "We are poor, we are backward, but we are definitely not fools. We welcome foreign businessmen to do business, but the premise is win-win. As I said before, I have no way to compete with Pepsi. However, I must have the ability to make your plan a major obstacle. You should know that this is China, and there is a visible hand above our heads. This hand is very powerful, even for a world-class like Pepsi. Companies can't compete."

Thomas was silent for a moment, then said, "What is your purpose?"

No matter how righteous and righteous Liang Yifei's words were and how pertinent his analysis was, since he came to the door instead of going directly to the government department or the Chinese side in Tianfu, it could only show that he was looking for something this time.

As long as you ask for something, you can go back to negotiation.

It's like returning to what Thomas does best.

"I'm in the health care products business, and I want to buy the bottling plant before Tianfu from Pepsi." Liang Yifei said.

A disdainful smile appeared on the corner of Thomas' mouth, and he said, "It doesn't look like you're a true patriot either."

Whether it is a Patriot or not is not what Thomas said, nor can it be judged through a few cooperations and one or two commercial actions.

At this time, Liang Yifei was not going to argue with Thomas on the issue of patriots or traitors, but just said: "The way businessmen are patriotic is to do a good job in their own business and create more jobs and taxes. Mr. Thomas, We are all businessmen, there is no need to talk about national justice, let’s talk about business.”

"Just because of your so-called guesswork, I'm going to sell you those bottling plants that have advanced equipment and are ready to produce Coke?" Thomas asked rhetorically, half-smiling.

"Of course not all, I think, about half." Liang Yifei said.

"Mr. Liang, I admit that you are different from the Chinese entrepreneurs I have met. But you seem to have forgotten that the bottling plant is not a dispensable asset for PepsiCo. We also need the bottling plant. Half, then where is our Coke bottled? After selling it to you, will we spend more money and energy to build the same bottling plant? Even if I agree, this kind of inexplicable transaction will not pass on the board of directors ," Thomas said.

"However, you don't need it now. A large number of bottling plants are shut down, and you have to pay workers' wages and equipment maintenance costs for this." Liang Yifei said.

"It will come in handy in the future," Thomas said.

Liang Yifei smiled and said, "That's the problem. I think the management of Tianfu Cola, even if they have no business acumen, must have signed a relevant agreement with you when they merged~www.wuxiaspot.com~ How many Tianfu Cola is there an agreement?"

After a pause, he said: "As far as I know, the contract requires that no less than 40% of the products be Tianfu Cola every year."

"How do you know?" Thomas' face sank.

At the time of the merger, the contents of the contract are kept confidential.

Liang Yifei laughed and said, "Mr. Thomas, you really don't know much about the national conditions. Here, nothing can really be kept secret."

Liang Yifei got this news from the old guard who spent 300 yuan.

Originally, he was not sure, he was just cheating Thomas.

Sometimes foreigners are like ghosts, and sometimes they are as innocent as children.

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